The lights are on
[Update] Joystiq has received word from sources at Square Enix that requested anonymity regarding the depth of job cuts. According to the report, layoffs affect marketing, public relations, accounting, IT, events, and more. President and CEO of Square Enix's US operations Mike Fischer will also be departing the company. Those affected will not all be leaving immediately, with public relations notably staying on through E3. We've reached out to Square Enix for comment.
Following reports that key Square Enix titles fell short of internal expectations, the publisher has today announced "corporate restructuring" that leaves an unknown number of individuals out of work. Game Informer received the following comment from a company representative.
"We can confirm that Square Enix's Los Angeles office has eliminated a number of positions as part of the corporate restructuring announced last week. This is an unfortunate situation and we are offering assistance and severance packages to any employees affected by this, we want to thank them for their hard work and sincerely wish them well in the future."
Game Informer has received a briefing document in Japanese, which carries more detail than its English counterpart. Our internal translation indicates that Square Enix's targets for Sleeping Dogs, Hitman: Absolution, and Tomb Raider (which set franchise sales records) were markedly higher than the actual, already impressive figures. Here are the comparisons:
Sleeping DogsActual: 1.75 million unitsExpected: 2 - 2.5 million units
Hitman: AbsolutionActual: 3.6 million unitsExpected: 4.5 - 5 million units
Tomb RaiderActual: 3.4 million unitsExpected: 5 - 6 million units
All three of these were critically acclaimed and enjoyed by fans, carrying impressive sales numbers (without accounting for exceedingly high anticipated figures). It's hard not to draw a line between the departure of president and CEO Yoichi Wada due to the publisher's poor financial performance and missed sales targets and these layoffs. We are hopeful that the employees that have been impacted by this restructuring find new employment soon.
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This is the second company to layoff their employees today!! Im starting to get a little nervous about where the gaming industry is heading.
Layoffs! Layoffs galore!
Whoever made these projections is to blame here, not the president per se. It irritates me that these games can do so well, yet not reach the ridiculously high expectations set here causing people to lose their jobs. I don't care all that much for square enix main, but I worry for their smaller studios, ala Eidos, and perhaps the others fates. They are actually making good games, so why should they be potentially punished for the acts of a company that hasn't made a truly great game in years?
Part of the blame has to fall on Square Enix. How did they expect to sell 6 million copies of Tomb Raider in less than a month at any time outside of the holiday season?
Talk abut high expectations! I hate to burst their bubble but none of those games had "Call of Duty" or "Madden" in the title so they have to be more realistic with their numbers.
Too much layoff news today.
And to think my goal was to have a corporate position in the gaming industry...
Good luck to those let go , honestly tho companies expectations in this ecomony is just horrible/dumb